Used Vehicle Prices Surge to Highest Since 2023 Amid Tariff Fears

The Manheim Used Vehicle Value Index reached its highest point since October 2023 because consumers worried about auto tariff price increases according to Cox Automotive. The Manheim Used Vehicle Value Index increased by 4.9% compared to last year to reach 208.2 while showing a 2.7% increase from March which exceeded the standard 0.2% monthly growth. Jeremy Robb from Cox explained that wholesale appreciation exceeded normal levels because of tariffs. The 25% tariffs on imported vehicles and parts create an indirect impact on the used car market through their influence on new vehicle prices and market demand. The retail used-vehicle market experienced a 1.7% decrease from March but showed a 13% increase year-over-year with average prices reaching above $25,000 while new vehicle prices reached $48,000. The index shows higher values than pre-2020 levels although it has not reached pandemic-era peaks. The used vehicle market prices show signs of stabilization following years of market fluctuations but tariffs continue to drive price increases.